A heated debate over the last few months seems not ended but getting fuel underneath. It’s all about Microsoft’s buying of Yahoo!. For the last four years Yahoo!’s rival Google’s stock has gone up 440%, while Yahoo!’s one remained flat. Microsoft moved to a bid to offer $33 per share making the total value of $47.5 bn. But Jerry’s team demanded $37/share. Therefore MS retreated. But shareholders anger and frustration persisted.
Many shareholders like Mr. Carl Icahn would like to give it a hard try to replace Yahoo!’s current board of directors. He is now lining up his own team and strategy. He is not a novice in corporate fight rather a veteran. Mr. Icahn is the 46th richest man in the world with a net worth of$14 bn.
The point is that many shareholders believe ‘the reject’ an expression of emotions rather than a smart business attitude. Second, the flat stock value of Yahoo! shares. MS offer genuinely looks like a good business deal. Third, everyone is talking about Google’s success in online advertisements and search. Google is now the leading search engine with a position far above Yahoo! and Live Search together. Therefore, shareholders arguments that the current board of directors is not doing enough for the business have some grounds.
But it’s not an easy move. Even after MS moved away Yahoo!’s share did not suffer any avalanche. Yahoo! has a solid base. It’s still internet’s no.1. Jerry can shrug off any failure and can successfully drive the company on smooth road. Best for Yahoo!!
News Source: BBC